3 Questions All Business Owners Should Ask About Worker's Comp Insurance

If you own a business of any kind or size, you most likely find yourself overwhelmed at times. From hiring and firing to training and managing the day-to-day operations, it is easy to see the challenges. Worker's compensation insurance may not seem like a priority, but it is important to understand and secure this coverage. Here are a few questions you should ask about worker's comp insurance.

What Is It?

Worker's compensation benefits are paid to employees if they are injured or become ill while working on the job. Unless you are able to pay these benefits out of your own pocket or your own business expenses, you need to invest in worker's comp insurance for your company.

The insurance should be enough to cover the cost of medical care for injured/ill workers and provide the employee with disability benefits, which ensure they are bringing in some income while they are unable to work.

Worker's comp insurance will also cover the cost of permanent disability if the employee is not able to return to work. The insurance can also offer coverage that pays a death benefit to family members left behind if your employee passes away because of their injury or illness.

Is It Required?

Of all the other expenses you will have for your business, you may wonder if you really need to invest in worker's comp insurance. The short answer is yes.

Most states require that your business carries worker's compensation insurance. Without it, you will be susceptible to paying high fees in addition to securing the insurance benefits for your benefits.

Of course, it is important to remember that the insurance is a worthwhile investment, too. Instead of paying for the medical expenses and disability payments for your injured/ill employees out of your own pocket, the insurance company will pay the expenses on your behalf as long as your coverage is in force.

How Much Does It Cost?

Now that you understand its importance, you may be wondering how much worker's comp insurance will cost your business. In reality, there is no easy way to answer this.

The total cost of your worker's comp insurance policy will depend on a few factors including how risky the employee's job is. For example, insuring construction workers will be more expensive than insuring office staff, since construction jobs have a higher risk of injury.

Help is available if you are ready to purchase worker's comp insurance coverage for your business and your employee's well-being.